Attention FAE Customers:
Please be aware that NASBA credits are awarded based on whether the events are webcast or in-person, as well as on the number of CPE credits.
Please check the event registration page to see if NASBA credits are being awarded for the programs you select.

National Taxpayer Advocate Dings IRS for Incorrect Notices

By:
S.J. Steinhardt
Published Date:
Jul 13, 2023

The Internal Revenue Service (IRS) has told taxpayers in federal disaster areas that they have to pay their taxes, despite having told them previously that they have more time, Accounting Today reported.

The discrepancy was pointed out by National Taxpayer Advocate Erin Collins in blog posts on Tuesday and Wednesday. She wrote that the fourth page of the CP14 balance due notice basically tells taxpayers they can ignore the information on the first three pages.

"Disaster area taxpayers can ignore the CP14 collection notice," she wrote. "The payment due date on the collection notice is wrong. The correct payment due date is stated on the disaster declaration. Taxpayers can verify the correct payment due date by checking www.irs.gov.”

Earlier this year, the IRS issued a series of notices informing taxpayers in federal disaster areas qualified for tax relief by extending the deadline for filing of various tax returns. The IRS lists these notices on its Tax Relief by Disaster Situations page.

But CP14 notices were still sent to taxpayers living in these areas who were given extra time to pay, according to Collins.

“Many taxpayers who live in disaster areas are confused and frustrated because the IRS sent them a collection notice and demand for tax payments with an incorrect due date. In technical terms, the IRS based its decision on its legal interpretation of its obligation to issue a “notice and demand” within 60 days of an “assessment.” Compounding the problem is the IRS’s inability to quickly redesign its forms or reprogram its information technology (IT) systems to provide more accurate information,” she wrote.

In addition to acknowledging the IRS’s inadequate technology, Collins recommended that the tax collection agency communicate better with taxpayers by providing earlier legal clarity, and improving its notices so that taxpayers can understand them better.

Click here to see more of the latest news from the NYSSCPA.